CommScope (COMM) Reports In-Line Q4 EPS, Beats on Revenues; Offers FY18 EPS Mid-Point Guidance Above Consensus

CommScope (NASDAQ: COMM) reported Q4 EPS of $0.47, in-line with the analyst estimate of $0.47. Revenue for the quarter came in at $1.12 billion versus the consensus estimate of $1.11 billion.

Outlook

CommScope management provided the following first quarter and full year 2018 guidance.

First Quarter 2018 Guidance:

• Revenue of $1.085 billion – $1.135 billion
• Operating income of $93 million – $108 million
• Non-GAAP adjusted operating income of $175 million – $195 million
• Non-GAAP adjusted effective tax rate of approximately 29 percent – 30 percent
• Earnings per diluted share of $0.13 – $0.16, based on 196 million weighted average diluted shares
• Non-GAAP adjusted earnings per diluted share of $0.44 – $0.49

Full Year 2018 Guidance:

• Revenue of $4.675 billion – $4.825 billion
• Operating income of $615 million – $660 million
• Non-GAAP adjusted operating income of $935 million – $985 million
• Non-GAAP adjusted effective tax rate of approximately 29 percent – 30 percent
• Earnings per diluted share of $1.46 – $1.58, based on 196 million weighted average diluted shares
• Non-GAAP adjusted earnings per diluted share of $2.56 – $2.71
• Cash flow from operations > $600 million

Fourth Quarter 2017 Performance

• Sales of $1.12 billion, consistent with guidance
• GAAP operating income of $92 million and non-GAAP adjusted operating income (excluding special items) of $199 million
• GAAP net income of $0.27 per diluted share
• Non-GAAP adjusted net income (excluding special items) of $0.47 per diluted share, consistent with guidance

GUIDANCE:

CommScope sees FY2018 EPS of $2.56-$2.71, versus the consensus of $2.59. CommScope sees FY2018 revenue of $4.675-4.825 billion, versus the consensus of $4.77 billion.

For earnings history and earnings-related data on CommScope (COMM) click here.

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